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of <h1>Transaction value and valuation of imported motor controller preserved at declared value; classification treated as electrical machinery not vehicle part</h1> Transaction value and valuation under the Valuation Rules were considered for imported goods described as a motor controller, with the adjudicatory focus ... Transaction value and valuation u/s 14 and Valuation Rules - imported item described as 'Motor Controller' - classifiable under Customs Tariff Headings 8503 and 8708 - principle of following earlier tribunal decision in the same respondent's case - Assessing Officer's reassessment u/s 17(5) - Notes to Section XVII and exclusion by Note No.2(f) - HELD THAT:- We find that the issue involved in the present appeal is no longer res integra as the same has already been dealt with by this Tribunal in the case of the very same respondent [2026 (1) TMI 1019 - CESTAT KOLKATA] held that ' we hold that the enhancement of assessable values by the ld. adjudicating authority is liable to be struck down and set aside and the impugned bill of entry is to be assessed at values declared by the Respondent. We observe that the Ld. Commissioner (Appeals) has given categorical findings to reject the enhancement of value by the assessing officer and we find no reason to interfere with the same. Accordingly, we uphold the impugned order passed by the Commissioner (Appeals), accepting the transaction value declared by the Respondent in the respective Bills of Entry. As per the terminology of CTH 8708, the goods covered should be the parts and accessories of motor vehicles under CTH 8701 to 8705 and as per the point 3 of the Notes to Chapter XVII, the said goods having the description in two or more of the headings of those chapters is to be classified under that heading which corresponds to the principle use of that part of accessory. As per the reading of point 3 of Notes to Section XVII and the explanatory notes covering both CTH i.e. 8503 & 8708, the said goods are imported under the description of 'controller' and there is no declaration by the respondent that the said goods are the spare parts of e-rickshaw. The order of the lower authority is maintained and the appeal filed by the Revenue stands dismissed.' Therefore, in view of the above, we do not find any infirmity in the impugned order passed by the Ld. Commissioner (Appeals) and hence, the same is upheld. In the result, we do not find any merit in the appeal filed by the Revenue and consequently, the same is dismissed. Issues: (i) Whether the assessing authority was justified in enhancing the transaction value declared for imported goods and rejecting the declared invoice value; (ii) Whether the imported item described as 'Motor Controller' is classifiable under Customs Tariff Heading 87089900 or under Customs Tariff Heading 85030090.Issue (i): Whether the assessing authority rightly enhanced the assessable value rejecting the transaction value declared by the importer.Analysis: The Tribunal examined whether the prerequisites for rejecting transaction value under Section 14 and the Valuation Rules were satisfied, including any evidence that the declared invoice value was not the price actually paid or that the buyer and seller were related or price was not the sole consideration. The Tribunal relied on an earlier final order in the respondent's own case which reviewed the assessing authority's methodology and evidentiary basis and found no material to displace the declared transaction value.Conclusion: The enhancement of assessable value is not sustained and the transaction value declared by the respondent is to be accepted.Issue (ii): Whether the imported 'Motor Controller' is classifiable under CTH 87089900 as part of e-rickshaw or under CTH 85030090 as parts suitable for use with electric motors.Analysis: The Tribunal analysed the character and principal use of the controller, the scope of Chapter 85 versus Chapter 87, the exclusion in Note No.2(f) to Section XVII, and explanatory notes. It considered whether the controller is solely or principally used with motor machines of headings 8501/8502 or whether it is a part solely of motor vehicles under CTH 8708. The Tribunal followed its prior reasoned decision in the respondent's own case which held that controllers are not covered by CTH 8708 and that the controllers are parts suitable for use with motors, therefore falling under CTH 8503 0090.Conclusion: The 'Motor Controller' is correctly classifiable under Customs Tariff Heading 85030090 and not under 87089900; the classification in the impugned order is upheld in favour of the respondent.Final Conclusion: Applying the Tribunal's earlier reasoned decision in the respondent's own case and the applicable provisions and notes of the Import Tariff, the impugned assessment order showing enhancement of value and re-classification is set aside in respect of valuation and classification; the Commissioner (Appeals) order is upheld and the Revenue's appeal is dismissed.Ratio Decidendi: Where there is no evidence that the declared invoice price is not the transaction value or that buyer and seller are related, rejection of transaction value under Section 14 and Valuation Rules is unjustified; goods described as controllers that are principally used with electric motors fall under CTH 8503 0090 and are excluded from classification under CTH 8708 by the relevant tariff notes.
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